Auroch’s $8m placement to accelerate nickel sulphide exploration
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Auroch is cashed up to accelerate nickel sulphide exploration in WA’s Norseman-Wiluna belt after raising $8m through a strongly supported placement.
The oversubscribed placement of 50 million shares priced at 16c, or a 11.6% discount to the 10-day volume weighted average price, was backed by new and existing institutional and sophisticated investors.
Along with its cash reserves, Auroch Minerals (ASX:AOU) is now well-funded for the aggressive exploration programs it plans to carry out over its nickel sulphide portfolio in WA as well as its base-metals portfolio in South Australia.
“The interest from investors in this placement, which was oversubscribed, is a testament to the quality and potential of the company’s assets and the belief in our highly experienced team,” managing director Aidan Platel said.
“The funds will be used to continue our aggressive exploration programs across Auroch’s quality portfolio of Australian base-metal projects over the next 12 months, in particular our Western Australian nickel sulphide assets.”
Auroch will carry out diamond drilling targeting electromagnetic conductors at the Nepean Deeps prospect to test for possible extensions to the known high-grade nickel sulphide mineralisation below the historical Nepean mine workings.
Earlier this month, the company said it had identified three off-hole conductors at the Nepean Deeps target through down-hole EM surveying during its maiden drill program at Nepean.
Diamond drilling will also be carried out at the Ragless Range zinc target within its Arden project in South Australia.
This will test a large gravity anomaly where previous drilling had intersected shallow, high-grade zinc mineralisation of up to 12.8m grading 4.96% zinc from a depth of 53m.
Other work includes internal scoping studies at the Saints and Nepean nickel projects evaluating potential development and production scenarios as well as regional exploration and follow-up drilling at the Nepean, Saints and Leinster nickel projects.
This article was developed in collaboration with Auroch Minerals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.